Former Orthofix VP convicted in kickbacks scheme | Legal News

April 10, 2012 by MassDevice staff

Former Orthofix vice president of sales Thomas Guerrieri pleads guilty to federal charges that he helped run a scheme to pay doctors to use Orthofix's bone-growth stimulators; also, Guidant whistleblower asks court to re-open off-label stent case; and 200 Irish plaintiffs join DePuy lawsuit spree. Legal News

A former vice president of sales for Orthofix (NSDQ:OFIX) faces up to 5 years in prison after pleading guilty to federal charges that he helped run a scheme to pay doctors to use the company's Spinal-Stim and Cervical-Stim bone growth stimulators.

Thomas P. Guerrieri, 51, of Youngstown, Ohio, yesterday copped to violating the Anti-Kickback statute in a Boston court. Had his case gone to trial, the feds would have proven that he set up a phony consulting deal with "Dr. S," 1 of Orthofix's highest-prescribing customers, according to court documents. Orthofix paid out 10s of thousands of dollars to the physician in return for little or no work, according to federal prosecutors. The scheme also involved faking time sheets to make the deal seem legit, according to the documents; Guerrieri and a subordinate even went so far as to obtain a letter from Orthofix's general counsel "indicating that the surgeon was compliant under his consulting agreement, which was not true," according to a press release.

"Guerrieri did these things to induce the surgeon to continue to order bone growth stimulators from the company," according to the release.

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